Spotlight on Nigeria
This edition of the AVCA's Country Spotlight examines Nigeria's economic landscape, private capital ecosystem and investment trends across multiple asset classes. Discover why Nigeria remains a leading destination for private capital investment in Africa.
The Annual AVCA Conference returns to Nigeria for the first time since 2014. Renewed macroeconomic stability has lifted investor confidence and deal flow, making this an opportune moment to spotlight Africa's largest consumer market.
For questions or comments on this publication, please contact research@avca.africa.
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A leading investment destination in West Africa
Between 2020 and 2024, investors completed 404 private capital transactions worth US$3bn, with an average ticket size of US$9.7mn. Nigeria accounted for 66% of West African deal volume and 52% of deal value, ranking second in Africa on both volume and value over the same period.
- Local investment leadership: More than half of fund managers that deploy capital in Nigeria are locally headquartered, with 71% focused on venture capital and 34% on private equity.
- Venture capital dominance: Nigeria led Africa with 563 VC deals worth US$3bn, equivalent to 19% of continental volume and 14% of value. Seed and other early-stage rounds accounted for more than 60% of these deals.
- Technology as a driving force: Tech or tech-enabled business models generated 82% of VC activity (463 deals, US$2.7bn).
- Sector concentration: Private capital investment centres on three sectors. Financial services leads with 157 deals worth US$1.5bn; consumer discretionary follows with 58 deals worth US$0.5bn; information technology places third with 51 deals worth US$0.4bn.
- Infrastructure momentum: From 2020 to 2023, Nigeria recorded 42 infrastructure deals with an aggregate value of US$562mn. Healthcare facilities, energy infrastructure and education services attracted the most interest.
- Gender inclusion progress: Female-led companies secured 12% of VC capital, while teams with at least one female founder received 28%, broadly in line with continental averages.